What’s better than a trend play? That’s right, TWO trend opportunities around the same currency!
Today, we’re all over the euro because EUR/JPY and EUR/CHF are poppin’ up interesting trend continuation plays.
Check them out!
EUR/JPY saw a fast and furious decline in mid-August but the bulls really said, “Hold up. I need to get in on this oversold action” around the 128.00 levels.The pair is now trading near 129.25, which lines up with the 50% Fib pullback of the last downswing and a trend line support that’s been around since last week.
Can EUR/JPY extend its upswing? Buying at current levels would get you in at a good price especially if the euro busts above the 130.00 zone to retest the 130.50 area of interest.
Not confident in the euro’s strength? You can also design trading plans around a breakout below the trend line support and target inflection points like 129.00 or 128.00.
I spy with my eye interesting dojis near EUR/CHF’s 1.0800 psychological handle!Another possible reason why EUR/CHF hasn’t made new highs above 1.0800 is that it’s near a trend line that’s been keeping the bulls and bears on their toes since June.
Now that the trend line and the 4-hour chart’s 200 SMA seem to be holding, y’all better keep your eyes peeled for a possible move back down to the 1.0700 August lows.
If you believe that the euro is due for an upside reversal against the franc, however, then you should be ready in case EUR/CHF makes new weekly highs and trades above the trend line.
An upside breakout could mean a retest of the 1.0870 area of interest or maybe even a trip to 1.1000.